Topic Progress:

This video discusses what a Material Requirements Planning system is.

Material Requirements Planning (MRP) is a system for scheduling purchase of materials and the production of inventory. An MRP system is typically software or cloud-based but doesn’t need to be. It is simply a system that tells you when you need to purchase materials and produce inventory so that inventory is ready when it is purchased.

The inputs for an MRP system are a production schedule and a bill of materials (BOM). The production schedule indicates when inventory needs to be produced and the bill of materials lists the components (raw materials) that are necessary to produce the inventory. Once the information is put in the MRP system, the system will indicate when (and which) materials need to be purchased.